Saturday, March 3, 2007

Threats of Recession: Get Out of Debt Now

Something in the air disturbs me. It's all well and good to keep mops going for years and to grow celery on the windowsill. Believe it or not, those things do make a difference...

But there seems to be a new caution in the air. People are talking about recession, either now or in the future. Today, the stock market is falling, and it's no news that a couple of mainstays of American economy - housing and automobiles - are down.

My one word of advice: If you're in debt, get out of it. Do what you have to do to pay off anything you owe. If you have something of value that you can sell, sell it and use the funds to pay off debt. If you have to take on a second job, do it. t may be the most important thing you can do to make it through the days ahead.

Debt can eat you alive in the here and now; what's it going to do if we go into a serious recession? How do you pay them without a job? What do you do when your savings quit earning interest? When you can't withdraw your savings for days, weeks or months?

I don't like fear mongers and that's not where I'm going with this. I just want you to know that if you're in debt you may be headed for trouble like you've never seen.

And if we don't go into recession? You'll be in better financial shape than ever!


  1. I'm with you Pat...get out of debt now and stay out! America needs to wake up and realize this is coming. All we really have to do is look at what's been going on in our country as well as other countries. Our country has been living so well but the time is now coming to pay the piper. You can only live in denial for so long! Thank you for all the wonderful advice you have been giving us over the years. It has made me really stop and get my priorities in order.

  2. You're right, we've been living very well and that makes it hard to comprehend a drastic change. I hope people will start waking up before it's too late, but it may already be.

    Thanks for your kind comments.

  3. Is it wrong to hope that housing prices will come down if/when the recession hits? But then again, there has been talk about recession off and on during the past year and this week's blip in the stock market is merely feeding the frenzy of the masses.

  4. No, there's nothing wrong with hoping, but if the prices drop on any major commodity, it's going to hurt the economy even more.

    The stock market "blip" may not be anything to be concerned about in itself, but taking all factors together, things don't look all that great.

    All of that said, depending on its severity and length, a recession may not be critical to a lot of people, but some will be laid off or lose savings. Regardless, being debt-free will minimize the pain.

  5. Pat, as always you give good sound advice. People can't see what they are doing to themselves when they spend more than they make. We seem to want everything "yesterday" and never stop to think what debt really cost us. I do believe that rough times are coming and I plan to be prepared. littlemiss63

  6. That's true, littlemiss. It's like we can't see past the dollar bill in our hand, whether it's really ours or not.

    Sooner or later, we have to face the truth.

  7. Pat,

    I'm so glad that you are willing to address this, so many shy away. I hope for the best but believe its up to me to make life changes. If I can, I will be only oweing on this house by the end of march. I hope to remain this way.


  8. We are still going through the after effects of great recession, which left almost everyone as a debtor.